Kinole Ward, in Morogoro Rural District, was once hampered by a critical obstacle: unreliable transportation.
Reaching Morogoro Town, over 45 kilometers away, was a constant struggle, hindering local trade and economic growth.
But the tides have turned, thanks to a remarkable initiative by the Kinole Savings and Credit Cooperative Society (Sacco).
Recognizing the need for financial literacy and empowered entrepreneurs, the Sacco offered its members training in proper financial management, provided by the Agriterra non-governmental organization.
This knowledge proved invaluable. Armed with financial acumen, the Kinole Sacco members embarked on a bold venture: borrowing over Sh2.3 billion to purchase a fleet of vehicles for passenger and cargo transportation.
This included over 70 Noah and Hiace passenger vans, alongside more than 300 motorcycles and cargo trucks.
The impact was immediate. The once-dreaded journey to Morogoro became a breeze, with readily available transport options.
This newfound mobility fueled the local economy, enabling farmers to deliver their harvests of spices like mango pepper, cardamom, and cinnamon, and fruits like strawberries and bananas, directly to markets.
“Ninety percent of the transportation needs of Kinole Ward are now met by vehicles financed through Kinole Sacco loans,” proudly declares Ramia Kondo, the Sacco’s Manager.
The success is evident in their numbers: by March 2023, the Sacco had collected Sh1.3 billion in savings, Sh427 million in member deposits, and witnessed a meteoric rise in share capital, from Sh300,000 in 2010 to Sh314 million by December 2022.
Bomoa Rajabu, Chairman of Tandai Village, shares the community’s elation. “This move has solved our long-standing transportation woes,” he says.
“Now, reaching Morogoro Town is no longer a hassle, and our farmers can easily transport their produce, boosting their incomes and the local economy.”
The Kinole Sacco story is a testament to the power of financial education and collective action. By equipping its members with financial literacy and providing access to capital, the Sacco has not only empowered individuals but also transformed the entire community, paving the way for a brighter future fueled by financial discipline and entrepreneurial spirit.
Mikidadi Waziri, the Resident Director of Agriterra, a non-governmental organization that deals with agricultural issues and provides education to savings and credit cooperatives, says they started providing financial management education at Kinole Saccos since 2021.
We started by building the capacity of the leaders and executives, then we provided training to more than 600 members on how to manage finances and improve the delivery of financial services to the members of that saccos, after we found that there was a major problem in the maintenance and preparation of the accounts of the association.
However, according to the population and housing census conducted in the country in August 2022, Kinole Ward has a total population of 13,356, an increase from 11,944 in 2012.